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Friday, July 22, 2011

Greece To Default

The markets have been, for the moment, calmed by the EU bailout "plan" that kicks the can of systemic failures of Europe further down the road.

However, the fact that Greece will default and the fact that the wealthier nations in Europe (ie Germany) will have to pay more to prop up Greece has not gone down well with the taxpayers.

Germany's largest taxpayers lobby (Germany’s League of Taxpayers) is not happy, and says that the decision reveals "negligence" toward taxpayers' interests and an unacceptable lack of accountability for indebted states

Reiner Holznagel, vice president of Germany’s League of Taxpayers, told Handelblatt newspaper:

"There has to be improvement in this respect so that taxpayers aren’t constantly faced with new liability risks. The EU decision that the bailout fund in the future can buy debt of states in crisis by itself seals the transformation into a liability union. "

Whatever the political "elite" of Europe claim, there is not the political will on the ground to support unification or unlimited bailouts; especially when those bailouts are applied to a country that knowingly committed fraud in order to join the Euro.

The markets, for the moment, may be appeased. However, be under no illusions, this deal will unravel and along with it the Euro.

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